DSP BlackRock Mutual Fund today announced the launch of DSP BlackRock Liquid ETF.
This ETF aims to cater to traders for utilizing the cash balance. When an investor sells his shares, he can instruct the broker to purchase DSP BlackRock Liquid ETF of an equal amount. This will ensure that from the date of settlement (T+2) itself, the investor will start earning dividends (subject to availability of distributable surplus). Investors, therefore, will no longer have to go through the inconvenience of receiving and depositing a cheque into their bank account and then waiting for the cheque to clear before they can invest in a liquid fund, as they did earlier.
The scheme aims to provide current income, commensurate with relatively low risk while providing a high level of liquidity, primarily through a portfolio of Collateralized Borrowing & Lending Obligation (CBLO), Repo in Government Securities, Reverse Repos and similar other overnight instruments. The scheme will have only one plan and one option, which is daily dividend reinvest. The minimum application amount during the NFO period would be Rs.5,000. The new fund offer opens on February 22, 2018 and will close on March 8, 2018.
Gauri Sekaria, Vice President, ETF and Passive Investments at DSP BlackRock MF is the fund manager for this fund. Gauri has over 12 years of experience in management of ETFs and index funds.
Anil Ghelani, CFA, Senior Vice President, DSP BlackRock MF said, “DSP BlackRock Liquid ETF is designed to always let investors’ money remain in action and hence makes it a useful product for brokers with large retail clients, PMS providers, F&O brokers, Institutions who invest in direct equities HNIs and retail investors who trade on the stock exchange.”